Top Mistakes People Make When Buying Gold Bars Online in the UAE

Purchasing gold bars online is becoming increasingly popular among UAE investors. Online shopping is convenient, allows for great variety, and makes it easy to compare prices. That being said, many people make expensive mistakes when purchasing gold online, mistakes that can impact the purity, authenticity, and ultimately, the value of their investment. Knowing the mistakes people make can help improve your ability to buy gold bars online safely and more effectively.

Failing to Verify the Seller’s Reputation

One major mistake that buyers make is purchasing from a seller that cannot be trusted or is unknown. You will find numerous online markets that say they are selling authentic gold; however, not all of them are reputable. While some sellers will show a certificate that may or may not be authentic, they may also sell gold that is lower quality than what they advertise. Be sure to conduct your own research and due diligence for your own background check on the seller before buying. Check for reviews and ratings, as well as a background check if they have certifications. It is always best to stick with an authorised dealer that has established reliability and credibility within the gold market.

Failures to Check Gold Purity and Hallmarking

Additionally, another mistake that buyers make is not checking to see whether the seller has validated the purity of the gold bar. Gold purity is measured in karats, which are listed on a scale, and the purest gold is 24K. However, receipts are not kept for consumers to validate that any product sold as a bar or gold of any kind has proper hallmarks verified by certification. Gold hallmarking provides verifiable evidence that the bar (or similar) was tested by a regulating authority.  Additionally, if the seller did not conduct tests to confirm the purity, they also may not be a seller of gold at all but lower-quality metals faking the assigned price of gold.  Again, be sure the purity of the new purchase is certified and test it with an agency you trust to validate the purchase of gold and its purity.

Unexpected Prices

Many buyers get so excited about online pricing with incredible deals that they forget to use common sense. Websites may advertise huge discounts or indicate selling gold at very cheap prices below market prices. However, the price of gold is determined by the global spot price and will not be too far apart from one seller’s pricing. If the price seems way too cheap, there is a good chance that it is a scam or worthless product. Therefore, you should buy a gold bar for very close to the spot price of gold with only minor differences in making charges or service charges.

Not Understanding the Total Price

When buying gold, or almost anything online for that matter, many buyers can be so focused on the price of the gold bar that they do not pay attention to all the other charges in addition to the price of the gold bar. Overall, buyers will have to pay more or less for the making charges or service charges, as well as shipping prices, insurance charges, or tax. Buyers will be extremely disappointed – sometimes shocked – if they have not calculated, understood, or missed these charges or, worse, are charged on delivery of the product. To prevent this mistake from happening, always read the terms and conditions and all the details in the invoice before confirming the sale. In the UAE, all reputable sellers clearly specify all charges on the invoice, so buyers will know exactly what they are paying for.

Not Authenticating the Product After Delivery

After you get the gold bar, some people do not check if it is real. While it may seem like a costly product from a trusted seller, it is still imprudent to skip this verification step. It is possible for even a trusted seller to unknowingly deliver an impure or defective gold bar. Follow up with a certified assay or authorised jeweller to determine the gold’s weight, purity and hallmarking information after delivery. This step will give you much-needed assurance and protect you from possible fraud or future disputes.

Not Shopping With Multiple Sellers

Buying from the first online store you find will more than likely be another mistake. Gold prices and offers may be slightly different on different sellers’ websites based on their policy or availability. Shopping online will allow you to see and compare multiple stores and prices and guarantee the quality of the gold for sale. Several online sellers offer or sell jewellery and have been selling gold bars or bricks in the UAE. Therefore, shopping multiple sellers will help you evaluate the seller and offer prices to save you money while getting the quality gold you want.

Disregarding Storage and Insurance Considerations

A majority of buyers are solely concerned with purchasing the gold and do not take measures to store it securely. Gold bars are worth a lot of money and need to be stored safely, especially if you are investing a substantial amount. Some online retailers in the UAE can provide insured vault storage options, while others will simply deliver the gold to your residence. If an individual fails to arrange insured storage, they are placing their investment at risk for theft or loss. Always confirm whether the seller provides secured storage or whether individuals are responsible for their own safekeeping.

Failing to Buy in Accordance with Market Trends

Gold prices fluctuate due to overall market conditions, expectations for inflation, and currency valuation. Many buyers do not spend the time to analyse trends in making their purchase and simply buy gold. Purchasing gold while gold prices are increasing/it is in demand can reduce return on investment, while waiting for a dip in market price can yield better value. Keeping abreast of market updates and obtaining expert advice before making a large purchase can help ensure that you buy at the appropriate time and maintain the value of your investment. 

Purchasing Without a Purpose

Lastly, one of the more typical errors is acquiring gold bars without clear intent. Some people simply purchase gold bars, thinking it’s a safe investment, but have no plan about when or how to use it. Before buying gold, decide if you are investing for long-term savings, as a gift, or for resale. This will help you determine the proper size, weight, and type of gold bar to buy. Having an investment goal will also help you understand and monitor your investment and help you make smart future investment decisions. 

Final Thoughts

Purchasing gold bars online in the UAE can be a great way to grow your wealth, but ensure you do so carefully. By avoiding some of the above mistakes, you can buy gold bars safely and at a profit! Always remember to verify sellers, check the purity of the bars, compare the price of bars and ensure secure storage is available to keep your investment safe. 

About CKS Gold

CKS Gold is one of the most reliable gold and precious metal dealers in the UAE. We are known for quality, transparency and secure transactions in all gold purchases. Our complete range of certified gold bars and coins have guaranteed purity and fair pricing for all cash purchases. CKS Gold wants every buyer to experience a safe and happy gold-buying experience, either online or in-store.